Conventional Mortgage Loans
Our Rates are Low and Our Process is Quick & Painless
Conventional Mortgage Loans
Conventional mortgage loans are a type of home loan that is not guaranteed or insured by a government agency such as the Federal Housing Administration (FHA) or the Department of Veterans Affairs (VA).
What is a Conventional Mortgage Loan?
Conventional mortgages are typically offered by private lenders such as banks or mortgage companies. These loans usually require a down payment of at least 3%, although a higher down payment can help reduce monthly mortgage payments and may also allow the borrower to avoid paying for private mortgage insurance (PMI). Conventional mortgages often come with a fixed interest rate and a set term, such as 15 or 30 years. This allows the monthly payment to stay the same for the life of the loan. Overall, conventional mortgage loans are a popular option for homebuyers who have a strong credit history and are able to make a sizable down payment.
Frequently Asked Questions:
What are the benefits of a conventional loan?
One of the primary benefits of a conventional mortgage loan is that it typically offers lower interest rates than government-backed loans, especially for borrowers with good credit. Another advantage is that there is no requirement to pay mortgage insurance if the borrower makes a down payment of at least 20% of the home's purchase price. Conventional loans also offer more flexibility in terms of loan amounts and property types, making them a good option for borrowers who are looking to purchase a high-value property or a non-traditional home.
What is the loan process?
Here's how our home loan process works:
- Complete our Conventional Mortgage Qualifier
- Receive personalized loan option
- Compare mortgage interest rates and terms
- Select the offer tailored to your needs!
What are the key features?
- Fixed Rates
- Adjustable Rates (ARM)
- 3% Down Payments
- Conforming Loans
- Jumbo & Super Jumbo Loans
- Terms from 5 to 30 Years
Do I qualify?
Borrowers typically need a credit score of at least 620 and a stable source of income that is sufficient to cover their monthly mortgage payments and other debts. A debt-to-income (DTI) ratio of 43% or lower is typically required. Additionally, borrowers will need to make a down payment of at least 3% of the purchase price.
What is the difference between a fixed-rate and an adjustable-rate conventional mortgage loan?
A fixed-rate conventional mortgage loan has an interest rate that remains the same throughout the life of the loan. An adjustable-rate conventional mortgage loan, on the other hand, has an interest rate that can fluctuate over time.
How much can I borrow with a conventional mortgage loan?
The amount that you can borrow with a conventional mortgage loan depends on a number of factors, including your credit score, income, debt-to-income ratio, and the value of the property that you are purchasing. To get a better idea of what you can afford check out our Free Mortgage Calculator!